Sales Taxes

Controversy Erupts as Florida Follows Forty-Three States in Adopting Uncontroversial Tax Provision

Imposing New Taxes on Peer-to-Peer Car Sharing Will Not Help Texas Economic Recovery

Imposing the rental car excise tax on peer-to-peer car sharing would be a move in the wrong direction by expanding a costly and distortive tax for visitors whose business will help Texans recover post-pandemic.

How High Are State and Local Tax Collections in Your State?

Although Tax Day has been pushed back this year, mid-April is still a good occasion to take a look at tax collections in the United States. Because differing state populations can make overall comparisons difficult, today’s state tax map shows state and local tax collections per capita in each of the 50 states and the District of Columbia.

Evaluating West Virginia Income Tax Repeal Plans

States which forgo income taxes have seen population and economic growth vastly outstripping their peers, and a post-pandemic culture that is friendlier to remote work will greatly enhance tax competition.

Are Excise Taxes on Beverages a Good Substitute for Income Taxes?

Policymakers should be very cautious about relying too heavily on excise tax increases to pay down tax reductions elsewhere. Ideally, revenue offsets would come from more stable, broader-based revenue sources.

Facts and Figures 2021: How Does Your State Compare?

Our updated 2021 edition of Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.

Join Us for a Free “State Tax Policy Boot Camp”

The Tax Foundation’s “State Tax Policy Boot Camp,” is ideal for anyone interested in gaining a better understanding of state taxation.

Sources of Government Revenue in the OECD, 2021 Update

Developed countries have on average become more reliant on consumption taxes and less reliant on individual income taxes. These policy changes matter, considering that consumption-based taxes raise revenue with less distortionary effects than taxes on income.

Tax-A-Rama in Maryland

The potential override of Gov. Larry Hogan’s (R) veto of a digital advertising tax (HB732) looms large over the current legislative session in Maryland, though it is only one of many tax proposals under consideration in the state.

State Sales Tax Breadth and Reliance, Fiscal Year 2020

By failing to keep pace with modern consumption patterns, sales taxes have become less neutral, less equitable, and less economically efficient over time.

Florida and Missouri, the Last Wayfair Holdouts, Consider Remote Sales Tax Bills

Two states—Florida and Missouri—have held back on online sales taxes thus far following the landmark 2018 Supreme Court case, South Dakota v. Wayfair. Now, lawmakers in both states have filed bills to address the issue this session.

Thirteen Priorities for Pro-Growth Tax Modernization in Nebraska

We identify 13 of the highest tax reform priorities Nebraska policymakers should consider in their effort to create a more growth-friendly tax code. We also offer a sample comprehensive tax reform plan to show one way policymakers could begin tackling these objectives over the next couple legislative sessions, with further progress to be made in the years ahead.

To What Extent Does Your State Rely on Sales Taxes?

Consumption taxes (like sales taxes) are more economically neutral than taxes on capital and income because they target only current consumption. Consumption taxes are generally more stable than income taxes in economic downturns as well.

Consumption Tax Policies in OECD Countries

Despite the potential of consumption taxes as a neutral and efficient source of tax revenues, many governments have implemented policies that are unduly complex and have poorly designed tax bases that exclude many goods or services from taxation, or tax them at reduced rates.

State and Local Sales Tax Rates, 2021

While many factors influence business location and investment decisions, sales taxes are something within lawmakers’ control that can have immediate impacts.

State Tax Changes Effective January 1, 2021

Twenty-six states and the District of Columbia had notable tax changes take effect on January 1, 2021. Because most states’ legislative sessions were cut short in 2020 due to the COVID-19 pandemic, fewer tax changes were adopted in 2020 than in a typical year.

Gross Receipt Taxes Become Part of New Jersey’s Recreational Marijuana Legalization

By the time marijuana is sold to a consumer, local taxes could be applied four different times—by one or more localities.

State Tax Collections Down 4.4 Percent Through September, While Local Tax Collections Rise

Combined state and local tax collections were down only $7.6 billion across the period, representing a total state and local tax revenue decline of 0.7 percent compared to the first nine months of 2019.

Taxes and New York’s Fiscal Crisis: Evaluating Revenue Proposals to Close the State’s Budget Gap

Our new study provides a 360-degree assessment of New York’s budget crisis, analyzes proposed revenue options, and offers solutions to raise revenue without driving more taxpayers out of the state or undoing recent positive reforms

Ranking Sales Taxes on the 2021 State Business Tax Climate Index

An ideal sales tax applies to a broad base of final consumer goods and services, with few exemptions, and is levied at a low rate. Broad-based, low-rate tax structures minimize tax-induced economic distortions that can occur when people change their purchasing behavior because of tax differences.